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Open AccessArticle

Causality Relationship Between Electricity Supply and Economic Growth: Evidence from Pakistan

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School of Economics and Management, North China Electric Power University, Beijing 102206, China
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Department of Electrical Engineering, University of Engineering and Technology, Taxila 47050, Pakistan
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Department of Architecture and Civil Engineering, City University of Hong Kong, Hong Kong 999077, China
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Department of Mechanical Engineering, COMSATS University Islamabad, Sahiwal Campus, Sahiwal 57000, Pakistan
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Beijing Key Laboratory of New Energy and Low-Carbon Development, North China Electric Power University, Beijing 102206, China
*
Authors to whom correspondence should be addressed.
Energies 2020, 13(4), 837; https://doi.org/10.3390/en13040837
Received: 18 December 2019 / Revised: 11 January 2020 / Accepted: 3 February 2020 / Published: 14 February 2020
(This article belongs to the Special Issue Energy Markets and Economics Ⅱ)
The long-term anticipation of electricity supply (ELS) and demand has supposed substantial prominence in the elementary investigation to offer sustainable resolutions to electricity matters. In this editorial, an outline of the organization of the electricity segment of Pakistan and analysis of historical supply and demand statistics, an up-to-date position of the contrary set of energy plans is presented. The intention of this analysis is to explore the Granger causality relationship between electricity supply and economic growth (EG) by using a multivariate context with time series statistics covering 1990 to 2015 in Pakistan. Augmented dickey-fuller (ADF) and Philips-Perron (PP) unit root tests indicate that variables are non-stationary and integrated in a similar order (1). Our findings also reveal that variables economic growths (GDP), electricity supply (ELS), investment (INV), and export (EX) are co-integrated. The study also finds the Granger causality runs from EG to ELS deprived of any feedback effect. Therefore, the policy implications from our findings indicate that electricity preservation strategies may be implemented without any economic adverse impacts. View Full-Text
Keywords: electricity supply; economic growth; relationship; Pakistan electricity supply; economic growth; relationship; Pakistan
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Azam, A.; Rafiq, M.; Shafique, M.; Ateeq, M.; Yuan, J. Causality Relationship Between Electricity Supply and Economic Growth: Evidence from Pakistan. Energies 2020, 13, 837.

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